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AAFM CTEP Exam - Topic 3 Question 78 Discussion

Lokesh purchased a flat on 1-4-1996 for Rs. 10,00,000/-. He sells the same flat on 1-10-2006 for Rs. 25,00,000/-. As a CTEP calculate the Indexed Cost of Acquisition on which capital gain would be calculated. (The CII of year 1995-96 is 281, for year 1996-97 is 305, for year 2005-06 is 497 and for year 2006-07 is 519).
A) Rs.17,01,639
B) Rs.18,46,975
C) Rs.17,68,683
D) Rs.16,29,508

AAFM CTEP Exam - Topic 3 Question 78 Discussion

Actual exam question for AAFM's CTEP exam
Question #: 78
Topic #: 3
[All CTEP Questions]

Lokesh purchased a flat on 1-4-1996 for Rs. 10,00,000/-. He sells the same flat on 1-10-2006 for Rs. 25,00,000/-. As a CTEP calculate the Indexed Cost of Acquisition on which capital gain would be calculated. (The CII of year 1995-96 is 281, for year 1996-97 is 305, for year 2005-06 is 497 and for year 2006-07 is 519).

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Suggested Answer: A

by Joni at May 06, 2026, 02:53 AM

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Shakira
3 days ago
I’m leaning towards C) Rs.17,68,683.
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Genevive
9 days ago
Adjusted for inflation, I think it fits.
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Cristen
14 days ago
B seems high. What’s your reason?
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Genevive
19 days ago
I prefer B) Rs.18,46,975.
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Ciara
24 days ago
Used the formula with CII.
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Blossom
29 days ago
Why A? What's the calculation?
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Ciara
1 month ago
I think it's A) Rs.17,01,639.
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Arminda
1 month ago
I feel confused about the CII values.
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Ronald
1 month ago
This question is tricky!
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Rima
2 months ago
I doubt the capital gain is that high, sounds off.
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Tenesha
2 months ago
Wait, how is the indexed cost calculated again?
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Cheryl
2 months ago
Definitely going with option A, seems accurate!
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Millie
2 months ago
The CII for 1996-97 is 305, right?
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Ellsworth
2 months ago
The purchase price was Rs. 10,00,000.
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Kristin
3 months ago
I feel like I might confuse the years when applying the CII. I hope I remember to use the right ones for both the purchase and sale dates!
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Haydee
4 months ago
I think the CII for the year of purchase is crucial here, and I vaguely recall that we need to use the CII of the year of sale too.
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Ezekiel
4 months ago
This question seems similar to one we practiced where we had to adjust the purchase price for inflation. I think I need to double-check the CII values.
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Melinda
4 months ago
I remember we discussed how to calculate the Indexed Cost of Acquisition using the CII, but I'm not entirely sure about the exact formula.
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